Managing risk is an integral part of Givaudan’s business. The Company actively promotes the continuous monitoring and management of risks at the operational management level on a day-to-day basis. We also operate a structured and continuous process of identifying, assessing and deciding on responses to key strategic risks at the Group level.
Risk Management is the responsibility of the Board of Directors which empowers the Executive Committee to lead the overall risk management process. The Givaudan Risk Management Charter, established by the Board of Directors, focuses on detailing the objectives and principles of risk management within Givaudan and formalising roles and responsibilities. It offers a framework for a pragmatic and effective risk management process to deal with the most relevant key risks which may affect Givaudan’s business ability to achieve its critical objectives.
This risk assessment and management process is set out to be comprehensive, organised and documented in order to further enhance compliance with corporate governance regulations, guidelines and good practices. It involves business managers from all business areas and allows understanding risk profiles and of the opportunities and threats they present for the Company. This then allows adequate management and mitigation plans to be put in place to address the different risks.
Additionally, the overall Risk Management process facilitates disclosure of potential risks to key stakeholders and the Company’s philosophy for dealing with them. At the same time, it reinforces the awareness of key executives of the magnitude of risks, provides risk-based management information for more effective decision-making, helps to safeguard the values of the Company and its assets, and protects the interests of shareholders.
Givaudan’s management at various levels is accountable for ensuring the appropriateness and adequacy of the risk mitigation decisions at individual and combined levels, as well as for ensuring timeliness of their implementation. It is also responsible for tracking and reporting on progress of the risk mitigation programmes to the Executive Committee on a regular basis, with an overall high level review of risk assessment and mitigation plan provided periodically to the Board of Directors. Please also consult Note 4 of the Financial Report regarding our financial risk management.